Happy New Year 2019

Taxation Structure in Japan

First of all let me wish you a Happy New Year 2019 and I hope all your aspirations, both personal and professional sees a fruition in this year.

I was not been able to publish for couple of weeks as I was dealing with few business prospects and partnerships across the border.

This article furthers our aim towards identifying the key cultural and business factors, that continue to be the heart of the typical Japanese companies. This article although shorter compared my past two articles, strives to deal with one of the most important aspects of any business plan i.e Taxation Structure.

Japanese Taxation Structure

As a matter of law any foreign business house in Japan, have to strictly abide by the local law of the land and would have to honor the Japanese corporate taxation laws.

More so the business houses focus, simply on getting Japanese revenues out of Japan legitimately by paying up the required minimal taxes.

The company situation and its ultimate tax efficient structure for doing business in Japan will vary according to the inbound tax laws of the country in which its head-office is situated and the tax treaty in effect between that country of origin and Japan.

Based on the Bilateral and the trade ties existent between the countries (country of origin and Japan) and Dual taxation avoidance treaties in place, Tax laws changes, Tax rates change are inevitable and do take place over the period of time.

It would always be advised to seek the professional guidance from the local taxation expert, prior to making any final decisions concerning the tax structure for doing business in Japan.


Shamanth S N

I publish a new article every other Tuesday. My articles mostly throw light on innovations in Japanese Market, Smart Cities, IoT or marketing strategy. To get notified whenever I publish my new article, please subscribe to my blog

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